Fall in consumer credit

28/02/2011

With news that credit card spending fell 7% in 2010, Kevin Still, Director of Eurodebt says: “Access to credit has been severely restricted for indebted consumers as lending criteria has significantly tightened. Whilst balance transfers can look attractive, getting a new credit card may prove difficult. Those that can clear unsecured debts look like they are reducing their debt burden but many credit card issuers are reducing credit limits as debt is cleared.

“On a more positive note, the value in 2010 of county court judgments (CCJs) against businesses and consumers fell nearly 25% from £3.5 billion to £2.6 billion. This may reflect a change in attitude by some creditors to treat customers fairly and agree to a realistic time to pay arrangements, reflecting the current climate."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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